Canada Post recorded a loss before tax of C$242m (US$184m) for the second quarter of 2018, in recognition of estimated costs associated with adjusting how delivery employees in suburban and rural Canada (RSMC) are paid.
In 2016, the Corporation and the Canadian Union of Postal Workers jointly agreed to put the system by which RSMC employees are paid to an arbitrator. A ruling issued on May 31, 2018, gave the parties helpful guidance on several aspects and 90 days to reach an agreement.
A mediation process is under way to reach a negotiated settlement. Once the process is completed, the corporation will be in a position to disclose the financial impact of the settlement, which may differ significantly from the estimates recognized in this quarter.
The Canada Post segment’s C$242m (US$184m) loss before tax for the second quarter compares to a C$27m (US$20m) profit before tax in the second quarter of 2017.
For the first two quarters of 2018, Canada Post is reporting a loss before tax of C$172m (US$130m) compared to a profit before tax of C$77m (US$58.5m) for the same period in 2017.
